Ukrainian millers want to temporarily stop exports

KIEV, UKRAINE — Flour millers in Ukraine sent a letter to Ukraine President Petro Poroshenko on Aug. 14 saying it is necessary to temporarily stop exports of milling wheat exports, because the current supply cannot meet domestic demand, APK-Inform reported on Aug. 19.

According to the letter, the stocks of milling quality wheat total 3.3 to 4.5 million tonnes, while the domestic consumption is estimated at 5 million tonnes.

In order to increase the supply of milling quality wheat on the Ukrainian market, the association offers to audit the existing grain stocks in the country and determine the available volumes of milling wheat.

The flour millers said the Ministry of Agrarian Policy needs to work with grain exporters on temporarily stopping the exports of milling wheat, and develop and approve the supply and demand balances of the grain in conjunction with the Ministry of Economic Development.

In turn, the State Agricultural Inspection of Ukraine should determine the qualitative indices of wheat for exports, not only by international standards, but also by the DSTU parameters, to determine the gluten content and quality, the letter said.

Also, it is required to provide additional funding of the Agrarian Fund to increase the stocks of milling wheat in the public intervention fund, the millers said.

If the government fails to accept the reporting measures as soon as possible, in two to three months Ukraine may face a situation similar to 2003-04, when the country had to import milling wheat at prices higher than the ones on the domestic market, according to the letter.